Economic chaos as dollar crashes

By Tererai Karimakwenda
26 January 2007

Prices in Zimbabwe are increasing everyday and stories about the economy and the key players who determine economic policy are dominating the headlines. “Government reviews economic vision.” “Gono delays monetary review,” “TV licenses up 2500%,” “Sugar price not sweet enough for producers” and “Parallel market rates go wild.” It’s all about the economy these days. And very few people care what the technical jargon means. They are concerned with surviving while the dollar just keeps losing value.

Inflation keeps rising and it is currently at an all time high of 1,281.1%. Doctors are on strike demanding more money. Nurses joined in this week and teachers said they are walking out on Monday. Water tariffs increased by 1000% and government approved sugar price hikes this week. And there is more!

The Herald reported Thursday that authorities have upped radio and TV licences by 2,500 %. This means radio licenses now cost Z$50,000 a year, up from Z$20. The cost of a television licence went up from Z$650 to Z$150,000. A car-radio licence now costs Z$200,000, up from Z$500.
To put this in perspective, junior doctors went on strike because they were earning just Z$56,000 a month.

Itai Zimunya of The Crisis Zimbabwe Coalition said people are completely fed up with the economy and politics that are dominating their lives. He said the recent price hikes have been shocking and people are saying the whole situation is a mockery. He said the striking junior doctors, nurses and teachers have the right idea. Street action invites violence and brutality from government - so Zimunya believes all Zimbabweans should just withdraw their services.